It is worth taking stock of the earnings environment for the Australian equities market following on from the August reporting season. At the end of the day, the market is only likely to perform once the earnings environment improves sustainably. We may be seeing early signs of a turn, and the headwind from larger stocks on the market’s earning growth appears to be dissipating. After two very difficult years in FY15 and FY16, expected earnings growth for the large cap stocks has stabilised in FY17 .